Really sad news. David did a great job running Fairfax Media.
The purchase of Trade Me was the highlight for NZ. The Rural Press purchase was at a great price, but probably a bite too far.
It will be very interesting to see the impact of this change on the future governance, independence, strategy, expectation of cash generation on Trade me.
Kirk rightly recognised the importance of the arms-length management of trade me. In future under new leadership and with the recognition that the only source of cash growth will be from online the focus of the new CEO’s magnifying glass on Trade me may be far more intrusive and the operational management may be akin to a newspaper business model than an online model.
Alistair I agree.
The structure is in place to maintain independence but new generals could change everything.
The concern is that new owners could look at Trade Me as a cash cow that needs to be milked hard, and increase the various transaction prices. This will slowly build up resentment and eventually result in the destruction of the marketplace.
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